State-run banks target ₹9,000 crore from Tier-II bonds by December

Fundraising rush follows SBI's record Oct issue as yields soften

State-owned banks, including Canara Bank and Punjab National Bank (PNB), are expected to tap the market by the last week of November, while others like Indian Bank and Indian Overseas Bank (IOB) are likely to do so next month. In total, ₹9,000 crore of Tier-II bond issuances are expected before the year ends.

 

This follows State Bank of India’s (SBI’s) ₹7,500 crore fundraise through Tier-II bonds at record levels in the second half of October. With bond yields softening, several state-owned banks are now planning to tap the domestic debt capital market to raise funds via Tier-II issuances. This marks